Every year I ALWAYS get over $1,000 back from my taxes. When the program asks how much stimulus i received and I enter the amount in drops by exactly$600. As I have stated, I contacted the IRS on this matter and they assured me that the tax preparation service (Turbotax) I am using is in error. What is the story here?
You are not paying tax on them. But Turbo Tax started out by assuming you didn't get it and giving you credit for the whole amount so your refund was too high to begin with. Then when you entered what you already got the starting refund was reduced or the tax due increased. Otherwise you would be getting the Stimulus amount again on your tax return.
Look at your return. The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it.
Why is turbo tax assuming and adding to your account. All turbo tax should do is ask if you got the simulus check and not assume you already got it . Very confusing when doing taxes.
This will be the last year I use Turbo Tax and they make very confusing
If that's the case why are they not getting back the $1000 and only $400
What the tax experts above are telling you is this:
When you are completing your TurboTax return, the program is continuously trying to add things to get you more refund.
When you start the questions on the Recovery Rebate Credit, the software initially adds the full amount to your anticipated refund amount until you actually get to the questions about the amount you actually received in the first and second stimulus checks. Once the software finds out that you already received a stimulus check that they already added to your refund amount, then they have to adjust it back out in order too have an accurate amount when you get to the end of the return.
If you are entitled to some additional stimulus money, then it will add it into your anticipated refund amount.
If you noticed that you ended up losing part of the anticipated additional stimulus check (since you had already received the checks) but not all of it, then you must have been entitled to receive the amount received plus an additional amount based on the IRS calculations determined in advance by the Internal Revenue Tax Code but not the full amount again. That is when it was reduced by $400 but not the full $1000 from your comments above.
The IRS has guidelines in the Internal Revenue Tax Code that determines how to calculate the amount to be received based on the information filed in your returns filed.
What I think you are saying, is "If my situation were such that that I were below all the thresh holds to owe a tax in 2020, I had not paid any taxes to claim a refund, and I had not been paid any stimulus in 2020, and I filed a 2020 tax return, Turbo Tax program I would issue me a credit in amount of $1800?
Thanks, Tall-tex
The IRS is sending out Stimulus #3 payments in weekly batches, and will take a few weeks to complete them all. This one comes to you separately (and automatically), not as part of your 2020 tax refund. You can check the status here: